IMCD acquire US chemicals distributor MF Cachat

IMCD to acquire US chemicals distributor MF Cachat

1:54 PM, 12th May 2015
IMCD to acquire US chemicals distributor MF Cachat
Piet van der Slikke, CEO, IMCD. (File photo)

ROTTERDAM, THE NETHERLANDS: Specialty chemical distributor IMCD NV said that it will acquire US-based distributor, The MF Cachat Company, as it provides a significant growth platform in the United States, a growing specialty chemicals region.

The acquisition will be paid from available cash, existing facilities and an additional incremental term loan facility of €30 million pursuant to the terms of its current facilities agreement and newly issued shares with a value of approximately €85 million.

The newly issued shares will have a secondary sale of up to 5 million existing shares indirectly controlled by the investment funds managed by Bain Capital Investors LLC.The net proceeds from the New Offer Shares will be used to finance the acquisition of MF Cachat, IMCD said.

The transaction is expected to be earnings accretive in the first full year post acquisition and is said to close in June/July 2015.

Initially IMCD will acquire 80 per cent of the total share capital from the existing MF Cachat management, including 100 per cent of MJS Sales Inc. The remaining 20 per cent, which is also owned by the management, will be acquired at the latest in 2017.

Headquartered in Ohio, MF Cachat generated revenue of $300 million (including $3 million of MJS Sales). Also the company MF Cachat fits well with the IMCD business model and is a leading specialty chemicals distributor in the US with a focus on coatings, construction, plastics, advanced materials and food, IMCD said.

“This is a very important next step in the strategy of IMCD to become a leading specialty chemicals distributor in key markets. A position in the US will give us the opportunity not only to grow in this huge market, but also to expand our relations with existing suppliers and customers,” said Piet van der Slikke, CEO, IMCD.

“MF Cachat and IMCD have similar strategies and cultures and we look forward to working together to expand our business in the US further,” said John Mastrantoni, president and CEO, MF Cachat.

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